I-T Dept Initiates Drive Against 1.52 Crore Taxpayers For Non-Filing Of ITRs; Here's Why

The Income Tax (I-T) Department is launching a campaign targeting individuals and entities who are obligated to file their income tax returns (ITR) but have failed to do so, as reported by the Economic Times. According to sources, the department has pinpointed a staggering 1.52 crore such individuals who either possess taxable income or have had tax deducted at source (TDS) but have neglected to file their returns.

The Central Board of Direct Taxes (CBDT) has directed its field formations to reach out to these defaulters starting April 15.

An official revealed that in the fiscal year 2022-23, while there were about 8.9 crore taxpayers, only 7.4 crore returns were filed. This discrepancy suggests that an estimated 1.97 crore individuals may have evaded filing ITR despite having tax deducted at source. Out of these, 1.93 crore were individuals, 28,000 were Hindu undivided families, and 1.21 lakh were firms, with the remainder falling into various other categories. Reportedly, instances have arisen where bank transactions linked to PAN were notably high, mandating the filing of ITR.

Field officials have been tasked with contacting these individuals armed with relevant data and information, elucidating the necessity of filing their ITRs.

Moreover, the CBDT possesses data on about 8,000-9,000 potential taxpayers who have been flagged due to high-value purchases or significant cash deposits, and they are being issued tax notices.

Those found to be wilful defaulters may face penalties, while taxpayers with legitimate reasons for sudden income fluctuations may need to provide explanations or file returns. The income tax department is leveraging the vast amount of data at its disposal to identify non-filers and detect any discrepancies.

In a related development last month, the CBDT announced that net direct tax collection had surged by 19.88 per cent to over Rs 18.90 lakh crore until March 17, primarily due to higher advance tax collections.

The net direct tax collection figure of Rs 18,90,259 crore as of March 17 includes Corporation Tax (CIT) at Rs 9,14,469 crore (net of refund) and Personal Income Tax (PIT), including Securities Transaction Tax (STT), at Rs 9,72,224 crore (net of refund).